New Jersey Resources Corporation (NJR)
NYSE:NJR
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New Jersey Resources
(NYSE:NJR)
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Rating:65Neutral
Price Target:
$59.00
â–²(5.96% Upside)
Action:Downgraded
Date:06/02/26
The score is driven primarily by solid profitability but weighed down by persistently negative free cash flow and still-elevated leverage. A strong earnings call with raised FY2026 guidance and a reasonable valuation with a ~3.4% dividend provide support, while near-term technicals are somewhat weak (below the 20/50-day averages).
Positive Factors
Regulated Utility Profitability
NJR's core regulated gas business delivers durable, high-margin earnings driven by rate-regulated cost recovery and allowed returns. Stable utility margins and modest revenue growth underpin predictable cash generation and justify long-term capital investment in the distribution system.
Negative Factors
Elevated Leverage
Material outstanding debt restricts financial flexibility and increases sensitivity to interest and refinancing risk over the medium term. Even with improving equity and targeted debt ratios, sustained large debt levels may constrain opportunistic investments and limit buffer during regulatory or project delays.
Read all positive and negative factors
Positive Factors
Negative Factors
Regulated Utility Profitability
NJR's core regulated gas business delivers durable, high-margin earnings driven by rate-regulated cost recovery and allowed returns. Stable utility margins and modest revenue growth underpin predictable cash generation and justify long-term capital investment in the distribution system.
Read all positive factors
New Jersey Resources (NJR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.53B
Dividend Yield4.01%
Average Volume (3M)602.56K
Price to Earnings (P/E)16.6
Beta (1Y)0.08
Revenue Growth8.52%
EPS Growth-18.44%
CountryUS
Employees1,372
SectorUtilities
Sector Strength65
IndustryRegulated Gas
Share Statistics
EPS (TTM)3.39
Shares Outstanding100,921,570
10 Day Avg. Volume779,499
30 Day Avg. Volume602,556
Financial Highlights & Ratios
PEG Ratio1.03
Price to Book (P/B)2.02
Price to Sales (P/S)2.37
P/FCF Ratio-20.13
Enterprise Value/Market Cap1.67
Enterprise Value/Revenue4.17
Enterprise Value/Gross Profit15.03
Enterprise Value/Ebitda12.09
Forecast
1Y Price Target
$62.00Price Target Upside11.35% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)3.48
Revenue Forecast (FY)$2.22B
New Jersey Resources Business Overview & Revenue Model
Company Description
New Jersey Resources Corporation functions as a diversified energy holding company, offering regulated natural gas distribution along with both retail and wholesale energy solutions. The company's business activities are categorized into four prim...
How the Company Makes Money
NJR primarily makes money through a mix of regulated utility earnings and non-regulated energy and infrastructure activities. (1) Regulated natural gas distribution: Through New Jersey Natural Gas, NJR earns revenue by delivering natural gas to cu...
New Jersey Resources Earnings Call Summary
Earnings Call Date:May 04, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Aug 12, 2026
Earnings Call Sentiment Positive
The call conveyed strong operational and financial performance driven by Energy Services outperformance, robust utility operations during an extreme winter, meaningful customer savings, clear near-term visibility in Storage & Transportation, and accelerating Clean Energy Ventures scale. Key strengths include a dramatic year-over-year increase in Q2 net financial earnings, raised FY2026 guidance, substantial capex deployment with maintained credit metrics, and a large clean-energy pipeline. Principal weaknesses or risks are CEV year-to-date comparability due to prior one-time gains, ongoing regulatory and execution risk for Leaf River expansion, concentration of the guidance uplift in Energy Services, and sizable multi-year capital commitments that require continued disciplined execution.Positive Updates
Exceptional Q2 Net Financial Earnings
Consolidated net financial earnings of $221.5M ($2.20 per share) in Q2 FY2026 vs $17.3M ($0.38) in Q2 FY2025 — a dollar increase of ~$204.2M (≈+1,181%) and EPS increase of ~$1.82 (≈+479%).
Negative Updates
CEV Year-to-Date Loss Relative to Prior-Year One-Time Gain
Year-to-date results show a higher net loss at Clean Energy Ventures primarily because FY2025 included a one-time gain from the sale of the residential solar business; this highlights volatility in segment-level comparisons when prior-year nonrecurring items are present.
Read all updates
Q2-2026 Updates
Positive
Negative
Exceptional Q2 Net Financial Earnings
Consolidated net financial earnings of $221.5M ($2.20 per share) in Q2 FY2026 vs $17.3M ($0.38) in Q2 FY2025 — a dollar increase of ~$204.2M (≈+1,181%) and EPS increase of ~$1.82 (≈+479%).
Read all positive updates
Company Guidance
Management raised fiscal 2026 net financial earnings per share (NFEPS) guidance for the second time this year to $3.48–$3.62 (a $0.25 raise earlier in the year and an additional $0.20 raise), driven by Energy Services outperformance and a Q2 consolidated net financial earnings (NFE) of $221.5 million ($2.20/share) versus $17.3 million ($0.38/share) in Q2 FY2025; New Jersey Natural Gas is expected to account for ~60% of FY2026 NFEPS, Energy Services’ contribution has increased, and Storage & Transportation NFE is forecast to more than double over the next two years (Leaf River expansion proposes >70% more working gas capacity and is on track for service in FY2027–28); year-to-date capital deployed is ~ $400 million (with NJNG ~2/3 of that), management reaffirmed FY2026/FY2027 estimates and a five‑year CapEx outlook of $4.8–$5.2 billion through FY2030 (with >60% invested in the utility), targets long‑term net growth of 7–9%, expects adjusted debt‑to‑capital to remain around 20% for the next five years (no need for block equity), and highlighted CEV growth metrics (installed capacity up ~25% in FY2025, 33 MW added this year, >500 MW in service, a pipeline >1.2 GW and a target to grow capacity an additional 50% by end of FY2027); operational winter metrics included >87% of projected winter gas supply hedged at an average ~$3.27/Dth (avoiding citygate prices that exceeded ~$135/Dth), generating >$93 million in gross customer savings this winter and >$1.6 billion over the program life, while SAVEGREEN has enrolled >115,000 customers with bill savings up to 30%.New Jersey Resources Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
62
Positive
Cash Flow
46
Neutral
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.21B | 2.03B | 1.78B | 1.93B | 2.91B | 2.13B |
| Gross Profit | 613.25M | 435.78M | 436.70M | 299.83M | 397.07M | 301.05M |
| EBITDA | 762.78M | 743.88M | 666.35M | 594.06M | 565.01M | 433.52M |
| Net Income | 341.42M | 335.63M | 289.77M | 264.72M | 274.92M | 117.89M |
Balance Sheet | ||||||
| Total Assets | 7.94B | 7.58B | 6.98B | 6.54B | 6.26B | 5.72B |
| Cash, Cash Equivalents and Short-Term Investments | 125.28M | 9.51M | 14.26M | 21.75M | 95.37M | 77.59M |
| Total Debt | 3.76B | 3.77B | 3.52B | 3.29B | 3.13B | 2.76B |
| Total Liabilities | 5.29B | 5.19B | 4.78B | 4.55B | 4.44B | 4.09B |
| Stockholders Equity | 2.65B | 2.39B | 2.20B | 1.99B | 1.82B | 1.63B |
Cash Flow | ||||||
| Free Cash Flow | -160.87M | -239.73M | -143.91M | -61.93M | -274.95M | -233.66M |
| Operating Cash Flow | 643.96M | 466.35M | 427.41M | 478.99M | 323.48M | 390.95M |
| Investing Cash Flow | -791.73M | -568.27M | -569.07M | -538.63M | -590.61M | -622.12M |
| Financing Cash Flow | 191.87M | 101.96M | 141.76M | 59.70M | 262.54M | 117.78M |
New Jersey Resources Technical Analysis
Positive
55.68
Price Trends
55.40
Positive
54.30
Positive
49.84
Positive
Market Momentum
-0.05
Negative
56.92
Neutral
64.91
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NJR, the sentiment is Positive. The current price of 55.68 is above the 20-day moving average (MA) of 54.82, above the 50-day MA of 55.40, and above the 200-day MA of 49.84, indicating a bullish trend. The MACD of -0.05 indicates Negative momentum. The RSI at 56.92 is Neutral, neither overbought nor oversold. The STOCH value of 64.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NJR.
New Jersey Resources Risk Analysis
New Jersey Resources disclosed 1 risk factors in its most recent earnings report. New Jersey Resources reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
New Jersey Resources Peers Comparison
UnderperformOutperform
Sector (66)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | $2.86B | 21.17 | 9.49% | 2.15% | 17.14% | 15.65% | |
66 Neutral | $4.80B | 17.53 | 8.20% | 3.45% | 2.81% | 7.01% | |
66 Neutral | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% | |
65 Neutral | $5.53B | 16.58 | 13.74% | 4.01% | 8.52% | -18.44% | |
65 Neutral | $7.24B | 11.65 | 12.77% | 3.92% | 0.52% | 20.56% | |
62 Neutral | $4.49B | 13.73 | 10.45% | 3.82% | 4.53% | 40.51% | |
58 Neutral | $6.41B | 13.87 | 11.86% | 3.07% | -48.15% | 105.44% |
* Utilities Sector Average
NJR
New Jersey Resources
56.21
12.77
29.38%
CPK
Chesapeake Utilities
121.54
0.13
0.11%
SR
Spire
78.39
6.80
9.50%
SWX
Southwest Gas
89.05
16.14
22.15%
UGI
UGI
34.72
-0.28
-0.81%
OGS
ONE Gas
77.99
6.77
9.50%
New Jersey Resources Corporate Events
Business Operations and StrategyRegulatory Filings and Compliance
New Jersey Resources Proposes Rate Cut, Investment Recovery Plan
Positive
Jun 1, 2026
On June 1, 2026, New Jersey Natural Gas submitted a package of filings to the New Jersey Board of Public Utilities that combine an 8.9% cut in customer bills for the 2026‑2027 winter with a request to recover about $950 million of past relia...
Business Operations and StrategyFinancial Disclosures
New Jersey Resources Boosts 2026 Earnings Guidance After Strong Quarter
Positive
May 4, 2026
New Jersey Resources reported stronger results for its fiscal 2026 second quarter ended March 31, 2026, with consolidated net income rising to $218.9 million, or $2.17 per share, from $204.3 million, or $2.04 per share, a year earlier. Net financi...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.